RNS Number:8918X
Gaming Insight PLC
28 June 2002
Enquiries:
David Sanderson John Bick/Chris Steele
Chief Executive, Gaming Insight plc Holborn
tel: 020 7070 7280 tel: 020 7929 5599
Gaming Insight Plc
Preliminary Results for the 12 months ended 31 December 2001
Gaming Insight Plc ("Gaming Insight"), the digital media rights and interactive
gaming group announces preliminary results for the twelve months ended 31
December 2001.
Summary
• Turnover increased by 246% to £13 million compared to the previous 18
month trading period
• Gross profits increased by 279% to £0.8 million
• Operating loss for the year of £19.6 million after a £9.9 million charge
for goodwill amortisation
• Net assets of £7.8 million
• Casino division continues perform strongly, benefiting from its exclusive
online casino partnership with Harrods and new agreements signed since
period end include Alta Vista, Marco Pierre White Restaurants and Tiscali
• Launch of www.Dicehouse.com with the Group's new proprietary software
allowing the bespoke creation of 3 dimensional branded online casinos
• Gobarkingmad, the UK's first dedicated multi-platform interactive racing
channel launched on Sky channel 414 on 24 June
Commenting, David Sanderson, Chief Executive, said:
"We have continued to develop each of our core properties during the period and
have been particularly successful in attracting major commercial partners. The
casino division continues to drive an increasing level of revenues into the
group and gobarkingmad, our interactive racing service has successfully launched
on digital satellite channel 414 and is available to Sky's 5.7 million digital
satellite homes in the UK, and is also simulcast on the Internet. Racing
Network has also continued to add further services to support its growing
customer base both in the UK and overseas."
Chairman's Statement
The 12 months to 31 December 2001 saw Gaming Insight consolidate its casino
activities and lay the foundations to open up new revenue streams on interactive
television.
During the period revenues increased by 246% to £13 million compared to trading
in the previous 18 months. We have also improved our gross profit, which
increased by 279% to £0.8 million. The operating loss for the year was £19.6
million after charging £9.9 million for goodwill amortisation as per the
Company's prudent accounting policy. The net assets for the Group as at the
year-end stood at £7.8 million.
The Casino Division continues to make a dominant contribution and to benefit
from the exclusive online casino partnership with Harrods
(www.Harrods-Casino.com). The Board's objective of establishing strategic
alliances with major distribution partners has been boosted by agreements with
Alta Vista, Marco Pierre White Restaurants, and more recently Tiscali - the
largest Internet service provider in Europe. The development of the new,
proprietary casino software, and the subsequent launch of www.DiceHouse.com have
precipitated very encouraging discussions with major international brands, keen
to emulate Harrods in extending their brand franchise into online gaming.
Gobarkingmad, our multi-platform, fully interactive greyhound racing channel,
has successfully passed all tests with BSkyB and went live on 24th June this
year on channel 414 in the UK with simulcast on the Internet and fully
interactive betting facilities. gobarkingmad has also been successfully
presented to a range of digital TV and Internet distribution partners and will
be extensively rolled out when the success of the BSkyB's launch has been
proven.
The Racing Network has enhanced its profile and distribution by securing a
5-year exclusive deal with Victor Chandler International to provide its betting
advice service to their 140,000 unique users. Racing Network has also
successfully broadened the reach of the product offering by launching a Chinese
version of the service branded www.horses888.com..
Casino Division
During 2001 our Casino division continued to show strong growth with revenues
increasing by over 240% in the year. A large proportion of the year was
dedicated to the continued development of our own proprietary casino software,
which allows the Group to provide a bespoke, state of the art, 3 Dimensional
casino experience, incorporating the best odds available on the Internet. Our
strategy going forward will be to build on the excellent reputation we have
established in terms of probity, fairness and customer service by partnering
with major brands around the world to create new on-line casino gaming
franchises.
The Group's position with regard to the legality of taking US bets continues to
be prudent. We will not accept US bets until it is clearly legal to do so. This
strategy continues to reap benefits in allowing us to develop strategic
relations with major brands. Furthermore our casino businesses have not suffered
from the downturn experienced in the sector as a result of tightened credit card
procedures introduced predominantly in the USA.
Interactive Racing Division; gobarkingmad
The Board remains committed to delivering a multi-platform, fully interactive
racing channel, offering live greyhound racing from the UK, USA, and Australia
under the gobarkingmad brand.
The gobarkingmad technical network test between June and September last year,
confirmed that live racing content from 66 tracks around the world could be
simulcast on the Internet and digital satellite TV in the UK. Subsequently, the
proto-type interactive pool betting application was successfully demonstrated
live, on-air, to key technical and content partners in December and the final
review with BskyB was successfully completed in June 2002
Having successfully passed all hurdles, gobarkingmad went live with a soft
launch on the 24th June this year on BSkyB channel 414. The Board believes that
this represents the world's first dedicated, free-to-air racing channel,
simulcast on the Internet and digital television, with fully interactive betting
facilities. Armchair viewers are now able to bet on live greyhound racing from
around the world at the touch of a button via their remote control. When fully
operational, the service will broadcast races live, every few minutes on Sky
digital TV platform and on the Internet. A user or viewer will be able to access
his or her account via either platform.
In addition, the gobarkingmad concept has been successfully marketed to a range
of Internet Service Providers and cable TV platforms around Europe and the Board
is confident that following a successful launch on digital satellite in the UK,
commercial terms will be agreed with networks in over 10 European countries.
Racing Network
In 2001, www.racing-network.co.uk consolidated its position as one of Britain's
leading racing and betting advice online services. The focus on new customer
acquisition has been led by the addition of superior content rather than
advertising spend, with a range of betting tools and services to establish a
position as a market leader. 2001 culminated in the signing of an exclusive
five-year marketing deal with Victor Chandler International and now all Racing
Network users are able to bet seamlessly via interactive racecards and betting
tools.
The reach of Racing Network has also widened substantially since the
introduction of www.horses888.com, a Chinese version of the Racing Network
betting and form service..
Additional developments include a pioneering broadcast of Internet radio in a
partnership with Cheltenham racecourse, delivering Cheltenham Festival radio to
Racing Network's worldwide user base.
Management
In the course of 2001, Richard Kay, Richard Kleiner and the Rt. Hon. Jonathan
Davies resigned as Directors of the company and the Board thanks them for their
efforts during their time with the company. More recently, Ian Hayes resigned
as Finance Director of the company in June 2002 to pursue other interests. Tom
Betts joined the Board as a non Executive Director in May 2001.
Outlook
The Board remains confident that the launch of the new, 3 Dimensional casino
gaming software will yield significant new brand partnerships. The proprietary
nature of the new software also means that the Group will cease to incur the
previous levels of licence fee payments made to its software partner. This
should result in increased gross margin whilst sustaining continued growth in
casino revenues.
The recent soft launch of gobarkingmad is an important milestone for Gaming
Insight, marking the culmination of significant investment by the Company and
offering potentially very significant revenues.
This soft launch of gobarkingmad currently features Australian and American
racing, and will be followed by a full launch including UK racing and supported
by a high profile media campaign on digital satellite TV channels and the
Internet featuring Vinnie Jones - the actor, former footballer and respected
greyhound racing fan.
Although it is too early to tell how gobarkingmad will perform, particularly as
this service is believed to be the first of its kind to be launched in the
world, the Board is pleased with the initial uptake in the first few days and is
also greatly encouraged by BSkyB's recently published interactive revenue
figures. Additional funding will however, be required to ensure the safe passage
of gobarkingmad from its start up phase through to profitability.
Racing Network continues to enhance the quality and depth of its betting advice
service, and will take advantage of distribution opportunities presented by SMS
technology on mobile networks. The commercial relationship with Victor Chandler
International is already yielding improved levels of revenue share and the Board
expects to see Racing Network develop new revenue streams through similar
arrangements with other leading bookmakers
Whilst the Board remains confident of the commercial prospects of the
gobarkingmad concept, our ability to continue is dependent upon raising
additional funding. The Directors are currently discussing further financing
opportunities with various parties and believe that these discussions will be
successfully concluded.
Nigel Robertson
Chairman
28th June 2002
Consolidated profit and loss account for the year 31 December 2001
18 months
Year ended ended
31 December 31 December
2001 2000
£'000 £'000
Turnover 12,989 3,752
Cost of sales (12, 204) (3,535)
Gross profit 785 217
Administrative expenses 20,339 28,049
Operating loss (19,554) (27,832)
Loss on disposal of discontinued operation - (1,458)
Loss on ordinary activities before interest and other income (19,554) (29,290)
Net interest (payable) / receivable (123) 115
Loss on ordinary activities before taxation (19,677) (29,175)
Taxation on loss on ordinary activities - -
Loss for the financial year (19,677) (29,175)
Loss per share
- Basic and diluted (9.05)p (23.9)p
All amounts relate to continuing activities.
All recognised gains and losses have been included in the profit and loss
account.
Consolidated and company balance sheet at 31 December 2001
Group Group Company Company
2001 2001 2001 2000
£'000 £'000 £'000 £'000
Fixed Assets
Intangible assets 9,410 19,144 - -
Tangible assets 549 66 18 10
Investments in subsidiary
undertakings - - 25,474 25,999
Other fixed asset investments - - - -
Total investments - - 25,474 25,999
9,959 19,210 25,492 26,009
Current Assets
Debtors 1,143 126 564 3,030
Cash at bank and in hand 551 174 196 94
1,694 300 760 3,124
Creditors: amounts falling due within
one year 2,241 932 533 491
Net current (liabilities) / assets (547) (632) 227 2,633
Total assets less current liabilities 9,412 18,578 25,719 28,642
Creditors: amounts falling due after
more than one year (1,600) (600) (1,000) -
Net assets 7,812 17,978 24,719 28,642
Capital and reserves
Called up share capital 2,526 37,774 2,526 37,774
Deferred share capital 36,657 202 36,657 202
Share premium account 9,763 1,459 9,763 1,459
Profit and loss account (41,134) (21,457) (24,227) (10,793)
Shareholders' funds 7,812 17,978 24,719 28,642
Included within Group and Company shareholders' funds is an amount of
£36,657,000 (2000 - £202,000) in respect of non-equity interests.
Consolidated cash flow statement for the year 31 December 2001
18 months 18 months
Year ended Year ended ended ended
31 December 31 December 31 December 31 December
2001 2001 2000 2000
£'000 £'000 £'000 £'000
Net cash outflow from operating (8,430) (4,081)
activities (note 2)
Returns on investments and
servicing of finance
Interest received 27 115
Interest paid (150) -
Net cash (outflow)/inflow from
returns on investments and servicing
of finance (123) 115
Tax paid - -
Capital expenditure and financial
investment
Purchase of tangible fixed assets (679) (100)
Net cash outflow from capital
expenditure and financial investment (679) (100)
Acquisitions and disposals
Purchase of subsidiary undertakings - (558)
Net cash acquired with subsidiaries - 120
Net cash outflow from acquisitions - (438)
Financing
Redemption of loan notes - (10)
Issue of shares 6,775 5,000
Expenses paid in connection with
shares issued (399) (369)
Issue of loans 3,235 -
Net cash inflow from financing 9,611 4,621
Increase in cash 379 117
Notes to the preliminary results
1. Accounting policies
The financial information set out above has been prepared using accounting
polices consistent with those used in the preparation of the full statutory
accounts.
To assist the readers of the preliminary results certain policies used in the
preparation of the full statutory accounts are reproduced below:
Basis of consolidation
The consolidated financial statements incorporate the results of Gaming Insight
plc and all of its subsidiaries as at 31 December 2001 using the acquisition
method of accounting. The results of subsidiary undertakings are included from
the date of acquisition and until the date of disposal.
Goodwill
Goodwill represents the difference between the fair value of the consideration
paid on acquisition of a business and the fair value of its identifiable net
assets at the date of acquisition, less any provision for impairment. It is
capitalised and amortised through the profit and loss account over the
directors' estimate of its useful economic life which is three years.
Impairment of fixed assets and goodwill
The need for any fixed asset impairment write down is assessed by comparison of
the carrying value of the asset against the higher of realisable value and value
in use.
Development costs
Development costs in respect of websites and software are charged to the profit
and loss account in the year of expenditure, unless individual projects satisfy
all of the following criteria:
• the project is clearly defined and related expenditure is separately
identifiable;
• the project is technically feasible and commercially viable;
• current and future costs are expected to be exceeded by future sales; and
• adequate resources exist for the project to be completed.
In such circumstances the costs are carried forward and amortised over the
directors' estimate of the useful life, commencing in the year the company
starts to benefit from the expenditure.
2. Reconciliation of operating loss to net cash outflow from operating
activities
Year ended 18 months ended
31 December 2001 31 December
£'000 2000
£'000
Operating loss (19,554) (27,832)
Depreciation 196 34
Amortisation 9,914 13,858
Impairment charge 720 9,111
Provision against investments - 34
(Increase) / decrease in debtors (1,017) 291
Increase in creditors 1,311 401
Loss on disposal of fixed assets - 22
Net cash outflow from operating activities (8,430) (4,081)
3. Accounts
These preliminary results do not constitute full statutory accounts within the
meaning of section 240 of the Companies Act 1985 (as amended). The financial
information for the year ended 31 December 2001 is extracted from the Group's
full statutory accounts to that date.
The auditors have not yet reported on the accounts for the year ended 31
December 2001 nor have any such accounts been delivered to the Registrar of
Companies. The auditors' report will refer to the disclosures made by the
directors regarding the ability of the Group to continue as a going concern, but
their opinion will not be qualified in this respect.
The financial information for the period ended 31 December 2000 is extracted
from the Group's full statutory accounts to that date, which received an
unqualified auditors' report and have been filed with the Registrar of
Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
Spdr Glob Infra (LSE:GIN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Spdr Glob Infra (LSE:GIN)
Historical Stock Chart
From Jul 2023 to Jul 2024
